The exchange of information between tax authorities has long been a key element of international tax cooperation. The agreement contains two models of bilateral agreements developed taking into account commitments made by the OECD and promised legal systems. The working group, led by Malta and the Netherlands, marks the first results of OECD cooperation with legal systems committed to improving transparency and ensuring an effective exchange of tax information. In this regard, legal systems may be based on a bilateral agreement between the competent authority for the implementation of the automatic exchange of information in accordance with the common standard of notification or automatic exchange of reports by country on a TIEA, particularly in cases where it is not (yet) possible to automatically exchange information through the relevant authority within the framework of a relevant multilateral agreement. The legality of intergovernmental agreements (IGAs) has been called into question on the grounds that any agreement between governments binding each government is a treaty. Since the U.S. Constitution does not allow the executive branch to unilaterally implement treaties without Senate approval, many argue that IGAs have no basis in the U.S. Constitution.  IGAs were not described or provided for in fatca laws, but were designed and implemented on the basis that it became clear that fatca would fail without it.
 Dutch Finance Minister Wouter Bos sees the model agreement as an important step. “The Netherlands has always believed that transparency and information exchange are key elements in neutralising harmful tax practices, and should therefore be at the top of the international tax agenda. In this context, I am very pleased with the publication of the model agreement. The fact that eleven non-member financial centres had the courage to actively contribute to this achievement is very encouraging. I would like to thank everyone, especially Malta, which, as co-chair, has made a decisive contribution to success. I expect this agreement to become the international standard for the exchange of tax information. The exchange of information on request was completed by an automatic procedure on 29 October 2014.  The automatic process must be based on a common reporting standard. The aim of this agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Information Exchange.
For more information, journalists are encouraged to contact the OECD`s Media Relations Division (tel.  45 24 97 00). A tieA request for information model has been developed to assist the relevant authorities of TIEA partners in requesting information. It is available in English and French as well as in Spanish, German, Italian, Japanese, Korean and Turkish. Maltese Minister John Dalli added: “It is essential that the agreement becomes the international standard. In its introduction, the exchange agreement recognizes that it is “important that financial centres around the world comply with the standards for the exchange of tax information set out in this document.” It encourages as many savings as possible to participate in this important undertaking and notes that it is not in the interests of the participating economies that “the implementation of the standards contained in this agreement should lead to a migration of businesses to economies that do not participate in the exchange of information.” OECD members and promised jurisdictions will conduct an ongoing dialogue to work towards this goal. 18/04/2002 – The OECD has published a model for the effective exchange of tax information developed by the OECD`s Global Working Group on Effective Information Exchange, involving representatives from several OECD countries and Aruba, Bermuda, Bahrain, the Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius, the Netherlands Antilles, Seychelles and San Marino.